Development of a luggage Service Level Agreement for Air France-KLM
Air France-KLM is a major player in global air transport. Its main activities are passenger and cargo air transport and aircraft maintenance.
The journey of luggage is complex. From the moment a passenger checks-in at her departure airport, to the moment she collects her bag at her arrival. Luggage is loaded, dispatched, transported, unloaded, re-loaded… by multiple teams, both part of an airline’s organization and their external contractors. Each contributor relies on their IT infrastructure, making it difficult to reconcile data, trace a bag and identify responsibility in the case of a delivery failure. This inevitably results in time-consuming and, sometimes conflictual negotiations.
Blockchain technology brings transparency and accountability into the process and offers an opportunity to build a system of trust and collaboration
Multiple teams involved in the handling of a luggage work in silos on different IT systems, making it difficult to reconcile data to trace an item.
Increase transparency and accountability
the luggage service workflow.
- Develop a fully interoperable solution
- Scale solution to manage around 200 000 luggages per month
Transparency & Accountability
A billing system based on each contributor’s performance
in order to improve overall efficiency, Air France-KLM and its contractors put in place a bonus/penalty system directly based on the subcontractor’s role in the success/failure rate of luggage delivery.
A blockchain platform to monitor performance in real time
The Blockchain Xdev developed a blockchain-based platform to provide all actors with a shared information system, bringing transparency and accountability to the entire process.
Air France-KLM monitors the entire workflow in real time via a performance dashboard. In case of failure, the company is able to identify the team responsible by tracing the bag in the system. And manage actions and an incentive to encourage the ultimate objective: an increase success in delivery rates.
The solution can be integrated on each team’s existing IT systems via APIs to enable easy adoption of the technology. It includes a top layer dashboard so Air France-KLM can monitor KPIs and build the bonus/penalty system for its contractors. The reward system will be implemented through a smart contract, enforcing clear, transparent rules. The solution builds trust in the system, favoring successful collaboration.
Efficiency and transparency
- Multiple teams and organizations are able to share and reconcile information to streamline the workflow, with a seamless integration with their own IT systems.
- Air France-KLM can monitor the performance of the entire workflow via a real-time dashboard
- The transparent bonus/penalty system is built on an immutable data source and calculation algorithms.